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Alternative tree logit models: comments on a paper of Koppelman and Wen

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  • Daly, Andrew

Abstract

The paper by Koppelman and Wen (1998) on nested logit structures (subsequently referred to as K&W), draws attention to alternative formulations of nested or 'tree' logit models. The intention of this note is to highlight some deficiencies in that paper and comment on the points raised in the discussion. The alternative model forms in question are stated concisely and generally and some properties of each form are derived. Then the consistency of model forms with the theory of utility maximisation and the relationship between alternative formulations are discussed. Finally, the appropriate advice for practitioners is discussed.

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  • Daly, Andrew, 2001. "Alternative tree logit models: comments on a paper of Koppelman and Wen," Transportation Research Part B: Methodological, Elsevier, vol. 35(8), pages 717-724, September.
    • Handle: RePEc:eee:transb:v:35:y:2001:i:8:p:717-724
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    1. Koppelman, Frank S. & Wen, Chieh-Hua, 1998. "Alternative nested logit models: structure, properties and estimation," Transportation Research Part B: Methodological, Elsevier, vol. 32(5), pages 289-298, June.
    2. Daly, Andrew, 1987. "Estimating "tree" logit models," Transportation Research Part B: Methodological, Elsevier, vol. 21(4), pages 251-267, August.
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    3. Bunch, David S. & Rocke, David M., 2016. "Variance-component-based nested logit specifications: Improved formulation, and practical microsimulation of random disturbance terms," Journal of choice modelling, Elsevier, vol. 21(C), pages 30-35.
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